(Newswire.net — July, 31, 2013) Phoneix, AZ– You probably have heard to build wealth you should invest. Starting the process of investing is probably what’s stopping many because it can be overwhelming. Luckily there are various options for anyone to invest money based on their income level and future goals.
Bonds: This option is a way for investors to earn a guaranteed interest from their investment. Although it doesn’t offer a huge amount of return it is a good way to earn a set amount of money.
Mutual Funds: This option offers an investor a wide variety of investments ranging from securities to bonds. Many investors would recommend this because it can offer a steady increase in your investments and gives you a diverse portfolio.
DRPS: This options offers little to no commission fees. Investing in them is low which is why so it it’s an ideal way for first-time investors to dip their feet in investing. Not every broker will mention this so be sure to ask.
Certificates of Deposit (CD): This option offers a low risk for investors because they offer a guaranteed interest with the money you initially invested. The return on it may not be very big, but it’s a guaranteed one.
Traditional/Roth IRA: The main difference between a traditional and Roth IRAs are when you pay taxes. With traditional IRAs you pay taxes when you withdraw money, but with Roth IRAs you pay the taxes before you put money in. They are mainly used for wretirement planning. Talk to a financial planner/advisor to see which IRA will be the best for you.
Also to keep in mind is make sure you have diversified investments. This will help if one industry (such as precious metals) takes a hit, but because you didn’t invest all of your money into just that one are you won’t get a big dent in your portfolio. It’s like the old saying “don’t put all your eggs in one basket”.
Whatever investment option(s) you decide to do remember to first do your research and talk with a certified broker/financial advisor to make sure you are on path you want to be. Researching how others have earned their wealth and have become millionaires through investing is also a good thing to do (one person to look up is Mike Dillard). It can help you decide on what investment options you might like to do.